Surviving a Wild Trading week

THE WEEK

All I can say about this week is OUCH!  We had two economic reports released this week which caused a bit of trading chaos.  The Price Action was all over the place.  This is a screen shot of the SPY

Next is a screen shot of the VIX which is a reverse indicator measuring Traders fears .  The higher the indicator, the more fearful and cautious traders are emotionally.  This screen shot is since the beginning of the year. You can see just how traders were reacting to the chaos.

LOOKING AHEAD

This coming Wednesday, the FOMC publishes their latest decision on interest rates in the fight against inflation.  I will go out on a limb and say I think there will be no change to the current rate.  Chairman Powell is adamant about achieving a 2% annualized inflation rate.  All the economic reports issued lately are showing the progress towards this goal has plateaued and on has reports has gone backwards.  For that reason, I don’t believe the rate will be lowered.  I don’t think it will be raised either because the high interest rates are greatly affecting the banking industry.  Housing sales and construction have really slowed greatly and consumers are putting off buying of discretionary goods.

HOW AM I DOING?

I had a week of small losses and small gains which add up to a big fat nothing.  I found it very hard to find good patterns to trade.  The Market was neither going up nor going down with any consistency.  I ended up putting only a few new trades on.

This Week’s DEEP DIVE ON Thursday

Stock Splits and how I trade them

Chipotle is posed to have the largest split in the Market’s history - 50:1 Split